Texas 2019 - 86th Regular

Texas House Bill HB3043 Compare Versions

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11 86R7180 BEE-D
22 By: Gutierrez H.B. No. 3043
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55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to the operation of 12 casinos in this state by licensed
88 persons in counties that have approved casino gaming; requiring
99 occupational licenses; creating criminal offenses and providing
1010 other penalties; authorizing fees.
1111 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1212 SECTION 1. Subtitle A, Title 13, Occupations Code, is
1313 amended by adding Chapter 2006 to read as follows:
1414 CHAPTER 2006. CASINO GAMING
1515 SUBCHAPTER A. GENERAL PROVISIONS
1616 Sec. 2006.001. DEFINITIONS. In this chapter:
1717 (1) "Casino game" means any game of chance, including
1818 a game of chance in which the outcome may be partially determined by
1919 skill or ability, that involves the making of a bet, as defined by
2020 Section 47.01, Penal Code.
2121 (2) "Casino gaming" means the conduct of casino games
2222 authorized under this chapter.
2323 (3) "Casino gaming manager" means a person licensed
2424 under this chapter to manage casino gaming operations at a location
2525 authorized under this chapter to conduct casino gaming in this
2626 state.
2727 (4) "Commission" means the Texas Lottery Commission.
2828 (5) "Executive director" means the executive director
2929 of the commission.
3030 (6) "Gaming vendor" means a person licensed under this
3131 chapter to provide, maintain, manufacture, distribute, sell, or
3232 lease casino gaming equipment and services to a person licensed to
3333 operate casino gaming in this state.
3434 Sec. 2006.002. APPLICABILITY OF FEDERAL LAW. All shipments
3535 of casino gaming equipment and devices into, out of, or within this
3636 state in connection with casino gaming are legal shipments of the
3737 devices and are exempt from the provisions of 15 U.S.C. Sections
3838 1171-1178 prohibiting the transportation of gambling devices.
3939 SUBCHAPTER B. ADMINISTRATION
4040 Sec. 2006.051. POWERS AND DUTIES OF COMMISSION AND
4141 EXECUTIVE DIRECTOR. (a) The commission and executive director
4242 have broad authority and shall exercise strict control over and
4343 closely monitor casino gaming in this state to protect the public
4444 health, welfare, and safety and ensure integrity, security,
4545 honesty, and fairness in the conduct and administration of casino
4646 gaming.
4747 (b) The executive director may contract with or employ a
4848 person to perform a function, activity, or service in connection
4949 with casino gaming as prescribed by the executive director.
5050 (c) The commission shall as necessary to protect the public
5151 health and safety:
5252 (1) monitor casino gaming operations on a continuing
5353 basis;
5454 (2) establish standards for:
5555 (A) the operation of casino gaming;
5656 (B) the provision of casino gaming equipment and
5757 services; and
5858 (C) the establishment and maintenance of casino
5959 gaming facilities; and
6060 (3) inspect and examine all casino gaming facilities,
6161 equipment, services, records, and operations to ensure compliance
6262 with the standards established by the commission.
6363 Sec. 2006.052. RULES AND PROCEDURES. (a) The commission
6464 shall adopt all rules necessary to supervise casino gaming in this
6565 state, administer this chapter, and ensure the security of casino
6666 gaming operations in this state.
6767 (b) The commission shall establish procedures for the
6868 approval, monitoring, and inspection of casino gaming operations as
6969 necessary to protect the public health, welfare, and safety and the
7070 integrity of this state and to prevent financial loss to this state.
7171 Sec. 2006.053. FEES. The commission shall establish the
7272 application, license, and license renewal fees for each type of
7373 license issued under this chapter in amounts reasonable and
7474 necessary to cover the state's costs incurred in the administration
7575 of this chapter and the regulation of casino gaming.
7676 Sec. 2006.054. ANNUAL REPORT. The commission shall make an
7777 annual report to the governor, the comptroller, and the legislature
7878 that provides a summary of casino gaming revenues and expenses for
7979 the state fiscal year preceding the report. The report must be in
8080 the form and reported at the time provided by the General
8181 Appropriations Act.
8282 Sec. 2006.055. INVESTIGATIONS. The commission may
8383 investigate a violation or alleged violation of:
8484 (1) this chapter by any person; or
8585 (2) the penal laws of this state in connection with the
8686 administration of this chapter, the regulation of casino gaming, or
8787 the conduct of casino gaming by a person authorized to operate
8888 casino gaming under this chapter.
8989 SUBCHAPTER C. CASINO GAMING
9090 Sec. 2006.101. CASINO GAMING OPERATOR LICENSE. (a) A
9191 person may not conduct casino gaming in this state unless:
9292 (1) the person holds a casino gaming operator license
9393 issued under this chapter; and
9494 (2) the casino is in a county in which a majority of
9595 the voters of the county voted in favor of authorizing casino gaming
9696 in that county in accordance with Subchapter F of this chapter or
9797 Section 47a(b), Article III, Texas Constitution.
9898 (b) A person issued a casino gaming operator license under
9999 this chapter may operate only one casino under the license.
100100 (c) The commission may not issue more than 12 casino gaming
101101 operator licenses under this chapter as provided by Section 47a,
102102 Article III, Texas Constitution.
103103 Sec. 2006.102. OTHER LICENSES REQUIRED. (a) A person may
104104 not provide, maintain, manufacture, distribute, sell, or lease
105105 casino games or casino gaming equipment or services for use in this
106106 state unless the person holds a gaming vendor license issued under
107107 this chapter.
108108 (b) A person may not act as a casino gaming manager for a
109109 gaming facility in this state unless the person holds a casino
110110 gaming manager license issued under this chapter.
111111 (c) Unless the person holds the required gaming employee
112112 license, a person may not act as a gaming employee in any gaming
113113 employee position for which the commission by rule requires a
114114 person to hold a license issued under this chapter.
115115 Sec. 2006.103. GAMING VENDOR LICENSE. (a) The commission
116116 shall issue a gaming vendor license to an eligible person with the
117117 resources and experience required to provide casino games or casino
118118 gaming equipment and services for casino gaming operations
119119 authorized under this chapter.
120120 (b) The commission by rule shall establish the minimum
121121 qualifications for a gaming vendor license to ensure a competitive
122122 market for casino gaming equipment and services and the
123123 availability of reliable casino gaming equipment and services,
124124 consistent with the health and safety of the public.
125125 Sec. 2006.104. CASINO GAMING MANAGER LICENSE. (a) The
126126 commission shall issue a casino gaming manager license to an
127127 eligible person with the qualifications and experience required to
128128 manage casino gaming operations under this chapter.
129129 (b) The commission by rule shall establish the minimum
130130 qualifications for a casino gaming manager license necessary to
131131 protect the health and safety of the public.
132132 Sec. 2006.105. GAMING EMPLOYEE LICENSE. The commission by
133133 rule and as necessary to protect the health and safety of the public
134134 may establish other gaming employee positions that require a
135135 license issued under this chapter to act in those positions.
136136 Sec. 2006.106. BACKGROUND INVESTIGATIONS. Before issuing a
137137 license to a person under this chapter, the commission shall
138138 conduct a background investigation that includes obtaining
139139 criminal history record information of the person seeking the
140140 license to assist the commission in determining the person's
141141 eligibility or suitability for the license.
142142 SUBCHAPTER D. REVENUE
143143 Sec. 2006.151. STATE CASINO GAMING ACCOUNT. The state
144144 casino gaming account is a special account in the general revenue
145145 fund. The account consists of all revenue received by the
146146 commission from casino gaming, fees received under this chapter,
147147 and all money credited to the account from any other fund or source
148148 under law.
149149 SUBCHAPTER E. OFFENSES; PENALTIES
150150 Sec. 2006.201. MANIPULATION OR TAMPERING. (a) A person
151151 commits an offense if the person intentionally or knowingly
152152 manipulates the outcome of a casino game, the amount of a casino
153153 game prize, or the operation of a casino gaming device by physical,
154154 electronic, or other means, other than in accordance with
155155 commission rules.
156156 (b) An offense under this section is a felony of the third
157157 degree.
158158 Sec. 2006.202. SALE OF CASINO GAME TO PERSON YOUNGER THAN 18
159159 YEARS OF AGE. (a) A casino gaming manager or an employee or agent
160160 of a casino gaming manager commits an offense if the person
161161 intentionally or knowingly:
162162 (1) sells or offers to sell a play of a casino game to
163163 an individual the person knows is younger than 18 years of age or
164164 allows the individual to purchase a play of a casino game; or
165165 (2) pays money or issues a credit slip or other
166166 winnings for a play of a casino game to an individual the person
167167 knows is younger than 18 years of age.
168168 (b) An individual who is younger than 18 years of age
169169 commits an offense if the individual:
170170 (1) purchases a play of a casino game;
171171 (2) accepts money, a credit slip, or other payment of
172172 winnings for play of a casino game; or
173173 (3) falsely represents the individual to be 18 years
174174 of age or older by displaying evidence of age that is false or
175175 fraudulent or misrepresents in any way the individual's age in
176176 order to purchase a play of a casino game.
177177 (c) An offense under Subsection (a) is a Class B
178178 misdemeanor.
179179 (d) An offense under Subsection (b) is a misdemeanor
180180 punishable by a fine not to exceed $250.
181181 Sec. 2006.203. DISCIPLINARY ACTION. (a) The commission
182182 may refuse to issue a license or may revoke, suspend, or refuse to
183183 renew a license or may reprimand a license holder for a violation of
184184 this chapter, other state law, or a commission rule.
185185 (b) If the commission proposes to take action against a
186186 license holder or applicant under Subsection (a), the license
187187 holder or applicant is entitled to notice and a hearing.
188188 (c) The commission may place on probation subject to
189189 reasonable conditions a person whose license is suspended under
190190 this section.
191191 (d) The commission may summarily suspend a license issued
192192 under this chapter in the same manner as the commission is
193193 authorized to suspend a license under Section 466.160, Government
194194 Code, if the commission determines that the action is necessary to
195195 maintain the integrity, security, or fairness of casino gaming.
196196 (e) The commission by rule shall develop a system for
197197 monitoring a license holder's compliance with this chapter.
198198 Sec. 2006.204. ADMINISTRATIVE PENALTY. (a) The commission
199199 may impose an administrative penalty against a person who violates
200200 this chapter or a rule or order adopted by the commission under this
201201 chapter in the same manner as the commission is authorized to impose
202202 an administrative penalty under Subchapter M, Chapter 2001.
203203 (b) The amount of the administrative penalty may not exceed
204204 $1,000 for each violation. Each day a violation continues or occurs
205205 may be considered a separate violation for purposes of imposing a
206206 penalty.
207207 (c) In determining the amount of the penalty, the executive
208208 director shall consider:
209209 (1) the seriousness of the violation, including the
210210 nature, circumstances, extent, and gravity of the violation;
211211 (2) the history of previous violations;
212212 (3) the amount necessary to deter future violations;
213213 (4) efforts to correct the violation; and
214214 (5) any other matter that justice may require.
215215 (d) The notice, hearing, and appeal for an administrative
216216 penalty assessed under this section shall be provided or conducted
217217 in the same manner as notice, hearing, and appeals are provided or
218218 conducted under Subchapter M, Chapter 2001.
219219 Sec. 2006.205. CIVIL PENALTY. (a) A person who violates
220220 this chapter or a rule adopted by the commission under this chapter
221221 is liable to the state for a civil penalty not to exceed $5,000 for
222222 each day of violation.
223223 (b) At the request of the commission, the attorney general
224224 shall bring an action to recover a civil penalty authorized by this
225225 section. The attorney general may recover reasonable expenses,
226226 including attorney's fees, incurred in recovering the civil
227227 penalty.
228228 SUBCHAPTER F. LOCAL OPTION ELECTIONS
229229 Sec. 2006.251. ORDERING LOCAL OPTION ELECTION. The
230230 commissioners court of a county may at any time order an election to
231231 legalize casino gaming under this chapter in that county. The
232232 commissioners court shall order and hold an election to legalize
233233 casino gaming under this chapter in the county if the commissioners
234234 court is presented with a petition that meets the requirements of
235235 Section 2006.252 and is certified as valid under Section 2006.253.
236236 Sec. 2006.252. PETITION REQUIREMENTS. (a) A petition for a
237237 legalization election must include a statement substantially as
238238 follows before the space reserved for signatures on each page:
239239 "This petition is to require that an election be held in (name of
240240 county) to legalize casino gaming in (name of county)."
241241 (b) A petition is valid only if it is signed by registered
242242 voters of the county in a number that is not less than three percent
243243 of the total number of votes cast for governor by qualified voters
244244 of the county in the most recent gubernatorial general election.
245245 (c) Each voter must enter beside the voter's signature the
246246 date the voter signs the petition. A signature may not be counted
247247 as valid if the date of signing is earlier than the 90th day before
248248 the date the petition is submitted to the commissioners court.
249249 (d) Each voter must provide on the petition the voter's
250250 current voter registration number, printed name, and residence
251251 address, including zip code.
252252 Sec. 2006.253. VERIFICATION. (a) Not later than the fifth
253253 day after the date a petition for an election under this chapter is
254254 received in the office of the commissioners court, the
255255 commissioners court shall submit the petition for verification to
256256 the county clerk.
257257 (b) The county clerk shall determine whether the petition is
258258 signed by the required number of registered voters of the county.
259259 Not later than the 30th day after the date the petition is submitted
260260 to the clerk for verification, the clerk shall certify in writing to
261261 the commissioners court whether the petition is valid or invalid.
262262 If the clerk determines that the petition is invalid, the clerk
263263 shall state the reasons for that determination.
264264 Sec. 2006.254. ORDERING ELECTION. If the county clerk
265265 certifies that a petition is valid, not later than the 30th day
266266 after the date of certification, the commissioners court shall
267267 order that an election be held in the county on the next uniform
268268 election date under Section 41.001, Election Code, that allows
269269 sufficient time to comply with applicable provisions of law,
270270 including Section 3.005, Election Code. The commissioners court
271271 shall state in the order the issue to be voted on in the election.
272272 The county clerk shall notify the commission by certified mail,
273273 return receipt requested, that an election has been ordered.
274274 Sec. 2006.255. BALLOT PROPOSITION. The ballot in a
275275 legalization election shall be printed to provide for voting for or
276276 against the proposition: "Legalizing casino gaming within (name of
277277 county)."
278278 Sec. 2006.256. ELECTION RESULTS. (a) If the majority of
279279 the votes cast in a legalization election favor the legalization of
280280 casino gaming, casino gaming authorized under this chapter is
281281 authorized within the county holding the election effective on the
282282 10th day after the date of the election.
283283 (b) The commissioners court of a county in which a
284284 legalization election has been held shall give written notice of
285285 the results of the election to the commission not later than the
286286 third day after the date the election is canvassed.
287287 (c) If less than a majority of the votes cast in a
288288 legalization election in any county are cast in favor of the
289289 legalization of casino gaming, casino gaming is not authorized in
290290 the county, and a subsequent election on the issue may not be held
291291 in the county before the corresponding uniform election date one
292292 year after the date of the election.
293293 (d) If less than a majority of the votes cast in two
294294 consecutive legalization elections within any county are cast in
295295 favor of the legalization of casino gaming, casino gaming is not
296296 authorized in the county, and a subsequent election on the issue may
297297 not be held in the county before the corresponding uniform election
298298 date five years after the date of the second election.
299299 SECTION 2. Section 411.108(a-1), Government Code, is
300300 amended to read as follows:
301301 (a-1) The Texas Lottery Commission is entitled to obtain
302302 from the department criminal history record information maintained
303303 by the department that relates to:
304304 (1) a person licensed under Chapter 2001, Occupations
305305 Code, or described by Section 2001.3025, Occupations Code; or
306306 (2) a person holding or applying for a license under
307307 Chapter 2006, Occupations Code.
308308 SECTION 3. Section 466.024(b), Government Code, is amended
309309 to read as follows:
310310 (b) The commission shall adopt rules prohibiting the
311311 operation of any game using a video lottery machine or video gaming
312312 machine, except in accordance with Chapter 2006, Occupations Code.
313313 SECTION 4. Section 47.02(c), Penal Code, as effective April
314314 1, 2019, is amended to read as follows:
315315 (c) It is a defense to prosecution under this section that
316316 the actor reasonably believed that the conduct:
317317 (1) was permitted under Chapter 2001, Occupations
318318 Code;
319319 (2) was permitted under Chapter 2002, Occupations
320320 Code;
321321 (3) was permitted under Chapter 2004, Occupations
322322 Code;
323323 (4) was permitted under Chapter 2006, Occupations
324324 Code;
325325 (5) consisted entirely of participation in the state
326326 lottery authorized by the State Lottery Act (Chapter 466,
327327 Government Code);
328328 (6) [(5)] was permitted under Subtitle A-1, Title 13,
329329 Occupations Code (Texas Racing Act); or
330330 (7) [(6)] consisted entirely of participation in a
331331 drawing for the opportunity to participate in a hunting, fishing,
332332 or other recreational event conducted by the Parks and Wildlife
333333 Department.
334334 SECTION 5. Section 47.09, Penal Code, is amended by
335335 amending Subsection (a), as effective April 1, 2019, and adding
336336 Subsection (c) to read as follows:
337337 (a) It is a defense to prosecution under this chapter that
338338 the conduct:
339339 (1) was authorized under:
340340 (A) Chapter 2001, Occupations Code;
341341 (B) Chapter 2002, Occupations Code;
342342 (C) Chapter 2004, Occupations Code;
343343 (D) Chapter 2006, Occupations Code;
344344 (E) Subtitle A-1, Title 13, Occupations Code
345345 (Texas Racing Act); or
346346 (F) [(E)] Chapter 280, Finance Code;
347347 (2) consisted entirely of participation in the state
348348 lottery authorized by Chapter 466, Government Code; or
349349 (3) was a necessary incident to the operation of the
350350 state lottery and was directly or indirectly authorized by:
351351 (A) Chapter 466, Government Code;
352352 (B) the lottery division of the Texas Lottery
353353 Commission;
354354 (C) the Texas Lottery Commission; or
355355 (D) the director of the lottery division of the
356356 Texas Lottery Commission.
357357 (c) Subsection (a)(1)(D) applies to a person manufacturing,
358358 possessing, or operating a gambling device under a license under
359359 Chapter 2006, Occupations Code.
360360 SECTION 6. Chapter 47, Penal Code, is amended by adding
361361 Section 47.095 to read as follows:
362362 Sec. 47.095. INTERSTATE OR FOREIGN COMMERCE DEFENSE. It is
363363 a defense to prosecution under this chapter that a person sells,
364364 leases, transports, possesses, stores, or manufactures a gambling
365365 device with the authorization of the Texas Lottery Commission under
366366 Chapter 2006, Occupations Code, for transportation in interstate or
367367 foreign commerce.
368368 SECTION 7. (a) As soon as practicable after the effective
369369 date of this Act, the Texas Lottery Commission shall adopt the rules
370370 necessary to implement casino gaming in accordance with Chapter
371371 2006, Occupations Code, as added by this Act.
372372 (b) The Texas Lottery Commission may adopt initial rules for
373373 purposes of implementing casino gaming in accordance with Chapter
374374 2006, Occupations Code, as added by this Act, that expire not later
375375 than May 1, 2020. Chapter 2001, Government Code, does not apply to
376376 the adoption of those rules. This subsection expires June 1, 2020.
377377 SECTION 8. This Act takes effect December 1, 2019, but only
378378 if the constitutional amendment authorizing the legislature to
379379 authorize the operation of 12 casinos in this state by licensed
380380 persons in counties that have approved casino gaming is approved by
381381 the voters. If that amendment is not approved by the voters, this
382382 Act has no effect.